India Luxury Car Market Size (2024 - 2029)

The Indian luxury car market is poised for growth, with an anticipated increase in market size over the forecast period. Despite challenges posed by the COVID-19 pandemic, which temporarily disrupted sales and production, the market is expected to expand as manufacturers introduce a variety of models and financing options. The rising demand for luxury SUVs, along with the growing interest in electric vehicles, is further driving market expansion. Key players are actively launching competitive electric models, contributing to the market's positive outlook.

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Market Size of India Luxury Car Industry

India Luxury Car Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 6.40 %
Market Concentration High

Major Players

India Luxury Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Luxury Car Market Analysis

The Indian luxury car market studied was valued at USD 1.06 billion in 2021. It is expected to reach a value of over USD 1.54 billion by 2027, registering a CAGR of more than 6.4% during the forecast period 2022-2027.

With the spread of COVID-19, the sales of luxury cars were affected due to lower footfalls in the showrooms. Various automobile manufacturers were forced to temporarily shut their production as the supply chain was disrupted by the country-wide lockdown imposed by the government, which restrained the market growth.

Over the long term, as luxury car manufacturers are launching multiple models with various price ranges and user-friendly financing schemes, the demand for luxury cars is expected to rise in the country. Moreover, the demand for luxury SUVs has been growing rapidly in the country and is expected to continue during the forecast period, as they offer extra space and comfort. Major luxury car manufacturers like Audi, BMW, and Mercedes are planning to launch new luxury models in the country at a competitive price.

Besides these factors, the growing popularity of electric cars supported by active launches and future strategies of key players in the market are expected to further support demand in the market during the forecast period. The market is also supported by new entrants into this electric luxury space in India. For example, Jaguar ventured into the Indian EV space with its first all-electric car, I-PACE. Audi made its EV debut in India with the launch of the Audi e-tron and e-tron Sportback. Both the cars are available in the 55 Quattro variant, while the standard e-tron gets a lower-spec 50 Quattro trim too.

India Luxury Car Industry Segmentation

The term luxury is used to categorize vehicles that are equipped with better performance capabilities, lavish interiors, and all the latest safety and technology features. The Indian luxury car market covers all the latest R&D initiatives. Investments are made by the government and vehicle manufacturers across the country. India's Luxury Car market is segmented into vehicle type, drive type, and price range.

Based on the vehicle type, the market is segmented into Hatchback, Sedan, and SUV. Based on the drive type, the market is segmented into IC Engine and Electric. Based on the price range, the market is segmented into INR 20 Lakh - 50 Lakh, INR 50 Lakh - 80 Lakh, and Above INR 80 Lakh. For each segment, market sizing and forecast have been done on the basis of value (USD billion).

By Vehicle Type
Hatchback
Sedan
SUV
By Drive Type
IC Engine
Electric
By Price Range
INR 20 Lakh - 50 Lakh
INR 50 Lakh - 80 Lakh
Above INR 80 Lakh
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India Luxury Car Market Size Summary

The luxury car market in India is poised for significant growth, driven by a combination of factors including the introduction of diverse models, user-friendly financing options, and a shift in consumer preferences towards luxury SUVs. Despite the initial setbacks caused by the COVID-19 pandemic, which disrupted production and reduced showroom footfalls, the market has shown resilience. Major players like Audi, BMW, and Mercedes-Benz are actively expanding their offerings, with a focus on both traditional luxury vehicles and electric models. The growing demand for luxury SUVs, which provide enhanced space and comfort, is a key trend, alongside the increasing popularity of electric vehicles (EVs) as consumers and manufacturers alike prioritize sustainability and eco-friendliness.

The Indian luxury car market is further bolstered by attractive incentives for electric vehicle production and sales, such as reduced GST rates for EVs compared to higher rates for conventional fuel vehicles. This has encouraged manufacturers to introduce electric models, with companies like Jaguar, Audi, and Mercedes-Benz making significant strides in the EV segment. The market is also witnessing the entry of new players and the expansion of existing brands, as evidenced by the launch of models like the Mercedes-Benz EQS and Audi e-Tron. These developments, coupled with advancements in intelligent mobility technologies, are expected to drive market growth and cater to the evolving preferences of Indian consumers.

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India Luxury Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Buyers/Consumers

      2. 1.3.2 Bargaining Power of Suppliers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size Value - USD billion)

    1. 2.1 By Vehicle Type

      1. 2.1.1 Hatchback

      2. 2.1.2 Sedan

      3. 2.1.3 SUV

    2. 2.2 By Drive Type

      1. 2.2.1 IC Engine

      2. 2.2.2 Electric

    3. 2.3 By Price Range

      1. 2.3.1 INR 20 Lakh - 50 Lakh

      2. 2.3.2 INR 50 Lakh - 80 Lakh

      3. 2.3.3 Above INR 80 Lakh

India Luxury Car Market Size FAQs

The India Luxury Car Market is projected to register a CAGR of 6.40% during the forecast period (2024-2029)

AB Volvo, JAGUAR LAND ROVER LIMITED, AUDI AG, Mercedes-Benz AG and BMW AG are the major companies operating in the India Luxury Car Market.

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